Buckingham Palace is preparing a significant financial package for Prince Andrew that includes a six-figure lump sum payment and a guaranteed annual stipend, according to senior royal sources.
The arrangement forms part of King Charles's broader restructuring of the monarchy's finances, aimed at creating a more streamlined and cost-effective royal household. However, the decision to provide substantial financial support to the Duke of York is likely to prove controversial given his withdrawal from public duties following the Virginia Giuffre scandal.
Financial Security Amid Ongoing Controversy
Insiders reveal that the King believes it's important to ensure his brother's financial stability, despite Andrew no longer being a working royal. The package is designed to cover the Duke's security and staffing costs at Royal Lodge, his 30-room Windsor residence.
"The King recognises there are legitimate costs that need covering," a palace source confirmed. "This isn't about luxury - it's about practical necessities."
A Delicate Balancing Act
The financial support comes with significant constraints. Andrew will remain excluded from all official royal events and will not undertake any public duties on behalf of the monarchy. His last major public appearance was at the Coronation in 2023, where he attended as a family member rather than a working royal.
The arrangement represents a delicate compromise for King Charles, who must balance family loyalty with public perception and the need to modernise the monarchy.
Broader Royal Financial Restructuring
This development occurs alongside wider changes to royal financing. The King is actively reviewing the sovereign grant system and considering how to rightsize the monarchy following his accession.
Prince Andrew's situation presents a particular challenge - how to support a family member while maintaining distance from controversies that could damage the institution's reputation.
The final details of the financial package are still being negotiated between the King's advisors and Prince Andrew's representatives, with an announcement expected in the coming months.
